Filing income tax returns is not easy if you have changed your job and have more than one employer in the Financial Year. If you have changed jobs in FY 2018-19 there would be two Form 16s. If you are a salaried employee, make sure to file ITR before July 31st 2019.
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Form 16 is a certificate issued by your employer. It contains all the information you need to file the income tax return. The employer would issue Form 16 immediately after the financial year in which the tax is deducted. This is on or before 15th June of the next year. Your Form 16 has 2 parts:
If you have changed jobs in the financial year, then you must decide if you want Part B from both the employers or just the last employer.
Part B shows:
See Also: Income Tax Return Filing And Eligibility
If you have more than one Form 16 then compute taxes after considering each Form 16 document.
STEP 1: Consolidate total salary you earn from all employers during the financial year.
STEP 2: Deduct the value of exempt allowances and perquisites (This is HRA, Travel allowances and so on).
STEP 3: You can claim deductions under Chapter V1A. (This is Section 80C to Section 80U). (Make sure the tax deductions are availed only once against total income).
STEP 4: Calculate tax liability based on income tax slabs.
STEP 5: You then subtract TDS deducted by all the employers mentioned in Form 16. (Crosscheck TDS deducted with Form 26AS).
(Do note that if you have informed the new employer on your previous salary, Form 16 from the new employer would have the computed numbers).
See Also: Income Tax Law And Income Tax
When you join a new job, submit Form 12B to the new employer. Give details of salary break-up like Basic Salary, HRA, LTA and perquisites/allowances.
Also mention tax deductions like Section 80C; Section 80D and so on already availed. (Mention TDS on salary deducted by previous employer).
After you furnish Form 12B, the employer will furnish the consolidated Form 16 based on details given in Form 12B.
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